1031 Exchange Services

1031 EXCHANGE

The staff at Twilley, Rommel & Stephens provide investment solutions that minimize your tax exposure in order to increase your return on investment. Partner, Bob Stephens, is a Certified Exchange Specialist, a designation held by only a few hundred people throughout the country. He leads the TR&S team in providing 1031 exchange and reverse exchange services throughout the country. As a Certified Exchange Specialist he is able to apply tax and investment strategies that create profitable solutions for TR&S clients.

Our 1031 exchange services are offered through Delmarva 1031 Exchange Service, LLC, a subsidiary of Twilley, Rommel & Stephens.
With the potential for substantial tax savings in every transaction, like-kind exchanges have become a necessary procedure for owners of businesses and investment properties. Federal law encourages tax-deferred exchanges. We can act as a qualified intermediary for your like-kind exchange or as a qualified exchange accommodator for a reverse exchange.

What is a 1031 Exchange?

A tax-deferred exchange is a way to save money. In a 1031 exchange a property owner trades one property for another without having to pay any federal or state income taxes on the transaction. Traditionally when a property is sold the owner is taxed on any gain realized by the sale. In a like-kind exchange, however, the tax on the transaction is deferred until the future, typically when the newly acquired property has been sold.

These exchanges are sometimes called tax-free exchanges because the exchange transaction itself is not taxed.

How it works

In an exchange, a property owner sells one property and acquires another. The transaction must be structured as an exchange of property rather than traditional sale. In order to have an exchange, rather than selling one property and buying another, the transaction needs to go through a qualified intermediary like TR&S. Legal documents are required including an Exchange Agreement. Another important requirement is that the seller is not allowed to have access to the cash at settlement. The proceeds of sale must go directly to the Qualified Intermediary at settlement. Once a replacement property is found the Qualified Intermediary (TR&S) delivers them as part of the closing process.

Robert Stephens, CPA is a Certified Exchange Specialist. For more information, please contact him at (410) 749-1919.